Test Bank for International Financial Management 9th Edition By Cheol Eun, Bruce Resnick All Chapters fully covered and updated Test Bank for International Financial Management 9th Edition By Cheol Eun, Bruce Resnick All Chapters fully covered and updated Test Bank for International Financial Manag...
International Financial Management 9th Edition
y y y y
,MULTIPLEyCHOICEy-
y Chooseytheyoneyalternativeythatybestycompletesytheystatementyoryanswersytheyquestion.
1) Whatymajorydimensionysetsyapartyinternationalyfinanceyfromydomesticyfinance?
A) Foreignyexchangeyandypoliticalyrisks
B) Marketyimperfections
C) Expandedyopportunityyset
D) allyofytheyoptions
2) Anyexample(s)yofyaypoliticalyriskyis
A) expropriationyofyassets.
B) adverseychangeyinytaxyrules.
C) theyoppositionypartyybeingyelected.
D) bothytheyexpropriationyofyassetsyandyadverseychangesyinytaxyrulesyareycorrect.
A) naturalyresourcesybeingydepletedyinyoneycountryyafteryanother.
B) skilledylaborybeingyhighlyymobile.
C) multinationalycorporations'yeffortsytoysourceyinputsyandylocateyproductionyanyw
hereywhereycostsyareyloweryandyprofitsyhigher.
D) commonytastesyworldwideyforytheysameygoodsyandyservices.
International Financial Management 9th Edition
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, A) allowsyinvestorsytoydiversifyytheiryportfoliosyinternationally.
B) allowsyminorityyinvestorsytoybuyyandysellystocks.
C) hasyincreasedytheycostyofycapitalyforyfirms.
D) noneyofytheyoptions
5) Japanyhasyexperiencedylargeytradeysurpluses.yJapaneseyinvestorsyhaveyrespondedytoythisy
by
A) liquidatingytheirypositionsyinystocksytoybuyydollar-denominatedybonds.
B) investingyheavilyyinyU.S.yandyotheryforeignyfinancialymarkets.
C) lobbyingytheyU.S.ygovernmentytoydepreciateyitsycurrency.
D) lobbyingytheyJapaneseygovernmentytoyallowytheyyenytoyappreciate.
A) youryfirmywillybeyableytoychargeymoreyinydollarytermsywhileykeepingypoundyprices
stable
.
B) youryfirmymayybeypricedyoutyofytheyU.K.ymarket,ytoytheyextentythatyyourydollarycosts
stayyconstantyandyyourypoundypricesywillyrise.
C) toyprotectyU.K.ymarketyshare,yyouryfirmymayyhaveytoycutytheydollarypriceyofyyourygo
odsytoykeepytheypoundypriceytheysame.
D) youryfirmymayybeypricedyoutyofytheyU.K.ymarket,ytoytheyextentythatyyourydollaryco
stsystayyconstantyandyyourypoundypricesywillyrise,yandytoyprotectyU.K.ymarketyshare,yyouryfir
mymayyhaveytoycutytheydollarypriceyofyyourygoodsytoykeepytheypoundypriceytheysame.
9) SupposeyMexicoyisyaymajoryexportymarketyforyyouryU.S.-
basedycompanyyandytheyMexicanypesoyappreciatesydrasticallyyagainstytheyU.S.ydollar.yThisyme
ans
International Financial Management 9th Edition
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